The Reserve Fund Planning Program (RFPP) is a national program designed to provide real estate practitioners with the necessary expertise required to complete a diversity of reserve fund studies and depreciation reports. The program covers a variety of property types from different Canadian provinces, offering both depth and breadth in understanding how reserve fund studies are prepared for condominium/stratas and other properties.
Course Description
CPD 891: Fundamentals of Reserve Fund Planning provides a comprehensive overview of the underlying theory, principles, and techniques required for preparing reserve fund studies.
The course is structured in five parts. The first lesson addresses the history and legislative basis for reserve fund studies for property managers and owners of commercial real estate. The second lesson addresses the physical inspection of the property that is the subject of the reserve study. The third and fourth lessons address the evaluation of depreciation and the costing of building elements. Finally, the fifth lesson addresses the methodology used to complete the financial analysis in the reserve fund study.
The course requires completion of multiple choice assignments with each lesson, plus a written project. The project is a challenging, stimulating, and thought-provoking exercise that requires research and analysis beyond the course materials, in applying the course concepts in a practical context. The course ends with a written examination.
CPD 891 is eligible for 12 AIC credit hours.
Course Outline
- Foreword - Introduction to Professional Development Courses
- Lesson 1 - Overview of Depreciation Reports – Legislative Requirements & Methodology
Legislative Overview
Implications of Reserve Fund Studies for Property Managers and Owners
Reserve Fund Professionals
Reserve Fund Study Principles and Methodology
Professional Liability Considerations
Quantifying Common Elements
Summary
Review and Discussion Questions
Assignment 1
- Lesson 2 - Identification and Quantification of Common Elements
Step 1: Identification and Quantification of Common Elements
Preliminary Research
Description and Measurement
Preparing for the Property Inspection
Inspection Items: Common Element Categories
Concluding the Inspection: Compiling and Reporting Inspection Results
Appendix 2.1: Sample Condominium Plans – Ontario Residential High-Rise
Appendix 2.2: Measuring Areas on Plans – Adobe Acrobat Professional
Appendix 2.3: Case Study – 55 Summer Lane
Appendix 2.4: Case Study – Valley Estates
Review and Discussion Questions
Assignment 2
- Lesson 3 - Lifecycle Assessment
Step 2: Life Span Analysis
Estimating Life Expectancies of Components
Case Study – 55 Summer Lane
Case Study – Kelowna Townhouses
Case Study – Valley Estates
Summary
Review and Discussion Questions
Assignment 3
- Lesson 4 - Cost Analysis
Step 3: Estimate Current Replacement Cost (CRC) of Reserve Components
Case Study – 55 Summer Lane
Summary
Review and Discussion Questions
Assignment 4
- Lesson 5 - Financial Analysis Accounting 101 for Condominiums/Stratas
Step 4: Project Future Replacement Costs
Step 5: Project Future Value of Current Reserve Funds
Step 6: Calculate Current Reserve Fund Contributions Required
Case Study – Saskatchewan Condominiums
Further Reserve Fund Case Studies
Summary
Review and Discussion Questions
Assignment 5
- Project
- Afterword
The Final Examination
Additional Information
View the Learning Objectives for each lesson in CPD 891
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